DoD's $98.6M B-1/B-2/E-3/F-15/C-130/F-16/A-10 Logistics Contract Awarded to Honeywell

Contract Overview

Contract Amount: $98,621,015 ($98.6M)

Contractor: Honeywell International Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $270.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: 2026 TASK ORDER FOR THE ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS.

Place of Performance

Location: TEMPE, MARICOPA County, ARIZONA, 85284

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $98.6 million to HONEYWELL INTERNATIONAL INC. for work described as: 2026 TASK ORDER FOR THE ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS. Key points: 1. This contract focuses on enterprise performance-based logistics for secondary power support across multiple aircraft platforms. 2. Honeywell International Inc. is the sole awardee, indicating a lack of competition for this specific task order. 3. The fixed-price with economic price adjustment structure carries some risk of cost overruns due to market fluctuations. 4. The primary sector is Defense, specifically supporting aircraft manufacturing and maintenance operations.

Value Assessment

Rating: fair

The contract value of $98.6 million for a one-year period appears substantial. Benchmarking against similar performance-based logistics contracts for aircraft components is difficult without more detailed scope information, but the price seems within a reasonable range for specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The rationale for sole-sourcing is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential aircraft support.

Public Impact

Ensures continued operational readiness for critical Air Force aircraft by providing essential power support. Supports a significant portion of the Air Force's tactical and strategic aircraft fleet. Potential for price increases due to economic price adjustment clauses could impact the overall cost to taxpayers. The sole-source nature raises questions about the government's ability to secure the best possible value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Economic price adjustment clause introduces cost escalation risk.
Lack of detailed justification for sole-sourcing.

Positive Signals

Addresses critical logistics need for multiple aircraft platforms.
Performance-based approach aims for efficient service delivery.
Long-standing relationship with incumbent may ensure smooth transition and operational continuity.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the sustainment of aging but critical aircraft fleets. Spending benchmarks for performance-based logistics in aerospace are highly variable, but this value is significant for a single task order.

Small Business Impact

There is no indication that small businesses are involved in this specific task order, as it is a sole-source award to a large corporation. Future subcontracting opportunities may exist but are not guaranteed.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to understand the justification for not competing the requirement and to ensure fair pricing and effective performance.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition.
Economic price adjustment clause poses cost risk.
Potential for higher-than-market pricing.
Lack of transparency in award justification.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.6 million to HONEYWELL INTERNATIONAL INC.. 2026 TASK ORDER FOR THE ENTERPRISE PERFORMANCE BASED LOGISTICS CONTRACT FOR SECONDARY POWER SUPPORT FOR B-1, B-2, E-3, F-15, C-130, F-16, A-10, AND GROUND CARTS.

Who is the contractor on this award?

The obligated recipient is HONEYWELL INTERNATIONAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $98.6 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the justification for awarding this critical logistics support contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is crucial for understanding the rationale behind bypassing the competitive process. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of viable alternatives. Without this justification, it's difficult to assess if taxpayers received fair value. Steps to ensure fair pricing in sole-source contracts often include detailed cost analyses, market research on comparable services, and negotiation with the contractor.

How will the economic price adjustment (EPA) clause be managed to mitigate potential cost overruns and protect taxpayer funds, given the one-year duration?

The management of the EPA clause is critical for controlling costs. The Air Force should closely monitor the indices used for adjustment and ensure they accurately reflect market changes without excessive inflation. Clear negotiation and defined limits on the EPA's impact are essential. Regular reviews of the contractor's cost data supporting the adjustments can help verify their legitimacy and prevent unwarranted price hikes.

What performance metrics are in place to measure the effectiveness of Honeywell's secondary power support, and how will these be used to hold the contractor accountable?

Effective performance metrics are key to ensuring the value of a performance-based contract. The contract should clearly define Key Performance Indicators (KPIs) related to reliability, response time, and availability of secondary power systems. The Air Force must have robust systems for tracking these KPIs and a clear process for issuing incentives or penalties based on performance, ensuring accountability and driving desired outcomes.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRPA114R002U

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Honeywell Safety Products USA, Inc.

Address: 111 S 34TH ST, PHOENIX, AZ, 85034

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $98,621,015

Exercised Options: $98,621,015

Current Obligation: $98,621,015

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SPRPA118D001U

IDV Type: IDC

Timeline